Special Period in the context of "Hugo Chávez"

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⭐ Core Definition: Special Period

The Special Period (Spanish: Período especial), officially the Special Period in the Time of Peace (Período especial en tiempos de paz), was an extended period of economic crisis in Cuba that began in 1991 primarily due to the dissolution of the Soviet Union and the Comecon. The economic depression of the Special Period was at its most severe in the early to mid-1990s. The situation improved towards the end of the decade once Hugo Chávez's Venezuela emerged as Cuba's primary trading partner and diplomatic ally, and especially after the year 2000 once Cuba–Russia relations improved under the presidency of Vladimir Putin.

Privations during the Special Period included extreme reductions of rationed foods at state-subsidized prices, severe energy shortages, and the shrinking of an economy forcibly overdependent on Soviet imports. The period radically transformed Cuban society and the economy, as it necessitated the introduction of organic agriculture, decreased use of automobiles, and overhauled industry, health, and diet countrywide. People were forced to live without many goods and services that had been available since the beginning of the 20th century.

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Special Period in the context of Economy of Cuba

Cuba has a developing planned economy dominated by state-run enterprises. The Communist Party of Cuba maintains high levels of public sector control and exerts significant influence over the Cuban economy. The island has a low cost of living, inexpensive public transport, as well as subsidized education, healthcare, and food. Cuba's economic growth has historically been weak due to high labour emigration, import dependency, an ongoing energy crisis, foreign trade sanctions, and limited tourism in Cuba. The dual economy of Cuba has led to a series of financial crises. Cuba is one of the poorest countries in Latin America and the Caribbean with high inflation, collective poverty, and food shortages. It is heavily indebted due to its large public sector and high deficit spending, with a global sovereign debt burden.

In the 19th century, Cuba was one of the most prosperous pre-industrial Latin American countries with the export of tobacco, sugar, and coffee. At the Cuban Revolution of 1953–1959, during the military dictatorship of Fulgencio Batista, Cuba was on a growth trajectory within Latin America. During the Cold War, the Cuban economy was heavily subsidized – 10% to 40% of Cuban GDP in various years – by the Eastern Bloc, due to their geopolitical alignment with the Soviet Union. Cuba endured severe economic downturn when the Soviet Union collapsed, with GDP declining 33% between 1990 and 1993. A protracted economic malaise known as the Special Period overcame Cuba from 1991 to 2001. The Cuban economy rebounded in 2003 with marginal liberalization and foreign support from Venezuela, China, and Russia. The United States has maintained an economic embargo against Cuba since 1960 due to geopolitical tensions. Cuba has free-trade agreements with many world nations.

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